SRCB(SH:601825) Orient Securities·2024-04-29 02:02Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 7.16 CNY per share [4]. Core Insights - The company's revenue growth slightly rebounded in Q1 2024, while profit growth declined. Year-on-year growth rates for revenue, PPOP, and net profit attributable to shareholders were -1.4pct, -5.0pct, and -5.2pct respectively compared to Q3 2023 and 2023 [1]. - The bank's asset expansion is steady, with a notable increase in loans, particularly in the technology innovation finance sector, which saw a nearly 30% year-on-year growth in 2023 [1]. - The net interest margin has narrowed but the cost of liabilities has improved, with a net interest margin of 1.67% in 2023, down 5 basis points from the first half of 2023 [1]. - Asset quality remains stable, although the non-performing loan ratio increased slightly to 0.99% in Q1 2024 [1]. Financial Performance Summary - The company's revenue for 2023 was 26,414 million CNY, with a year-on-year growth of 3.1%. The projected revenue for 2024 is 27,314 million CNY, reflecting a growth of 3.4% [3]. - The net profit attributable to shareholders for 2023 was 12,142 million CNY, with a year-on-year growth of 10.6%. The forecast for 2024 is 12,709 million CNY, indicating a growth of 4.7% [3]. - The earnings per share (EPS) for 2023 was 1.26 CNY, with projections of 1.32 CNY for 2024 and 1.40 CNY for 2025 [2][3]. - The price-to-book ratio (PB) for 2024 is projected at 0.52X, with comparable companies averaging a PB of 0.57X [2][5].